SolarEdge Technologies Inc (SEDG)

Days of sales outstanding (DSO)

		Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019
Receivables turnover		32.41	18.36	36.39	53.71	437.07	2.84	3.04	—	3.53	3.68	3.27	3.72	4.25	4.60	5.28	5.30	8.30	8.76	6.73	3.73
DSO	days	11.26	19.88	10.03	6.80	0.84	128.72	119.92	—	103.43	99.23	111.61	98.02	85.83	79.30	69.18	68.87	44.00	41.66	54.27	97.88

September 30, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 32.41
= 11.26

The Days of Sales Outstanding (DSO) is a metric that measures how long it takes for a company to collect its accounts receivable. A lower DSO indicates that the company is collecting payments from customers more quickly, which is generally positive as it reflects efficient cash flow management.

Analyzing SolarEdge Technologies Inc's DSO data over multiple quarters reveals fluctuations in the collection efficiency. The DSO was exceptionally low at 0.84 days on September 30, 2023, indicating that the company was collecting payments swiftly during that period. However, there was a significant increase in DSO to 128.72 days on June 30, 2023, suggesting a delay in collecting payments from customers, which may impact cash flow.

The DSO improved over the next few quarters, reaching 6.80 days on December 31, 2023, and further decreased to 10.03 days on March 31, 2024. These lower DSO figures indicate enhanced collection efficiency compared to the previous quarter. The DSO continued to decrease to 19.88 days on June 30, 2024, showing some increase in the collection time.

The DSO data for the most recent quarter, September 30, 2024, shows a further increase to 11.26 days, indicating that the company is taking slightly longer to collect payments compared to the previous quarter. It is essential for SolarEdge Technologies Inc to closely monitor and manage their accounts receivable collection process to ensure cash flow remains efficient and consistent.

Overall, SolarEdge Technologies Inc's DSO data reflects fluctuations in collection efficiency over the quarters, highlighting the importance of effective accounts receivable management in maintaining a healthy cash flow position.